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Viewing cable 05NDJAMENA1492, CHINA'S LIMITED INFLUENCE IN CHAD

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Reference ID Created Released Classification Origin
05NDJAMENA1492 2005-10-04 13:57 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Ndjamena
This record is a partial extract of the original cable. The full text of the original cable is not available.

041357Z Oct 05

ACTION AF-00    

INFO  LOG-00   NP-00    AGRE-00  AID-00   CEA-01   CIAE-00  COME-00  
      CTME-00  INL-00   DODE-00  DOEE-00  ITCE-00  DOTE-00  EAP-00   
      EB-00    EXME-00  EUR-00   E-00     FAAE-00  UTED-00  VC-00    
      FRB-00   TEDE-00  INR-00   L-00     VCE-00   AC-00    NEA-00   
      NRC-00   NSAE-00  NSCE-00  OES-00   OMB-00   NIMA-00  EPAU-00  
      PER-00   GIWI-00  ACE-00   SP-00    IRM-00   SSO-00   SS-00    
      STR-00   TRSE-00  FMP-00   BBG-00   EPAE-00  IIP-00   SCRS-00  
      DRL-00   G-00     NFAT-00  SAS-00     /001W
                  ------------------460420  041339Z /38    
FM AMEMBASSY NDJAMENA
TO SECSTATE WASHDC 2395
INFO AMEMBASSY ABUJA 
AMEMBASSY ACCRA 
AMEMBASSY ADDIS ABABA 
AMEMBASSY BAMAKO 
AMEMBASSY BEIJING 
AMEMBASSY KAMPALA 
AMEMBASSY LIBREVILLE 
AMEMBASSY LONDON 
AMEMBASSY NIAMEY 
AMEMBASSY PARIS 
AMEMBASSY YAOUNDE 
AMCONSUL CHENGDU 
AMCONSUL HONG KONG 
AMCONSUL SHANGHAI 
AMCONSUL SHENYANG
UNCLAS NDJAMENA 001492 
 
SIPDIS 
 
 
SENSITIVE 
 
DEPARTMENT FOR AF, AF/C, EAP, INR, DRL; LONDON AND PARIS 
FOR AFRICAWATCHERS 
 
E.O. 12958: N/A 
TAGS: EAGR ECON CD EFIN EMIN ENRG ETRD ETTC PREL SENV AF CH ENIV
SUBJECT: CHINA'S LIMITED INFLUENCE IN CHAD 
 
REF: A. STATE 153199 
 
     B. NDJAMENA 1210 
 
 1.  (SBU) Summary:  Since 1997, N'Djamena's official 
recognition of Taiwan has limited Chinese influence in Chad. 
Chinese firms, however, are interested in becoming involved 
in Chad's oil sector.  Chad is not taking the People's 
Republic of China up on recent overtures.  End Summary. 
 
2.  (SBU)  Chad recognized Taiwan and cut off diplomatic 
relations with China in 1997.  Prior to the break up, China 
funded a number of programs in Chad, including the 
construction of the current National Assembly building and 
the National Sports Stadium.  In the late 1990s, the 
Government of Chad obtained a bilateral development 
assistance package of USD 72 million from Taiwan over a 
six-year period.  Chad's acceptance of this financing and 
recognition of Taiwan prompted the severing of diplomatic and 
economic ties. 
 
3.  (SBU) Taiwanese funding has been used for construction of 
bridges, roads, and rural and urban water distribution 
systems; payment of teachers' salaries, and disaster-relief 
type grants.  The Taiwanese have an agricultural and medical 
attache within their diplomatic mission in N'Djamena. 
Overseas Engineering and Construction Company, a Taiwanese 
firm, finalized a multi-million dollar contract with the GOC 
to develop a number of roads within the capital.  Taiwanese 
firms also plan to develop hotels and restaurants in the 
future. 
 
4.  (SBU)  Taiwanese and Chinese firms have become 
increasingly interested in investment opportunities in Chad's 
oil sector.  Chinese investors with a company called Great 
Wall Drilling are partial owners of an oil exploration 
consortium in partnership with Encana, a major Canadian oil 
company.  Taipei's Chinese Petroleum Corporation signed a 
"preliminary cooperation agreement" for exploration purposes 
in October 2004.  Taiwanese officials have privately 
expressed their frustration with the ability of Taiwanese 
companies to seek further exploratory contracts, complaining 
that the EssoChad consortium has already laid claim to most 
of the market. 
 
5.  (SBU) Tan Sun (Mark) Chen, Taiwan's Foreign Minister 
visited Chad in July to see an agricultural development 
project and cement the relationship with gifts of vehicles 
and generators, promises of future exchanges, the paving of 
more roads, and possibly a new National Assembly building. 
(Ref B). 
 
6.  (SBU)  Taiwanese officials have expressed their growing 
concern that China wants to become more active in Chad. 
Taiwanese diplomats warn that China' objective is to extract 
resources for its own economic gain, not provide development 
programs.  In particular, China wants to be more involved in 
the extraction of oil resources and to find other ways to 
profit from investment opportunities in Chad.  Chinese 
companies have recently won contracts to construct roads 
outside N'Djamena.  Chad's former Foreign Minister Yagoum 
Yamassoum told Ambassador Wall about recent Chinese overtures 
in New York and Libreville and claimed that Chad had 
dismissed them. 
 
7.  (SBU) Comment: Chad will remain in Taiwan's corner for 
the foreseeable future.  We will continue to watch for 
Chinese investment.  We are still awaiting more detailed 
information on Taiwanese assistance to Chad and will forward 
it when it is received. 
 
WALL 
 
 
NNNN